At their daily lows Monday, each was down by more than 3%, and over the past seven days, each has declined by more than 9.5%.
These declines appear to relate to traders’ fears about enhanced regulation of cryptocurrencies, and the way that their profits on tokens may be taxed under provisions of President Biden’s recently enacted infrastructure act.
On Monday, El Salvador announced a “Bitcoin City” and sought to raise money via a “Bitcoin bond” — both firsts for the crypto world.
And the fact that El Salvador is the first nation to take crypto seriously is another indication that these cryptocurrencies are going mainstream.
However, headwinds remain strong in the crypto world, and there are additional macro-level worries about inflation and the Federal Reserve’s tapering plans.
That said, there are some encouraging catalysts to take away from Monday’s announcements on the Bitcoin and Ethereum fronts.
Over the short term, it can be difficult to assess which direction the winds are blowing.